Latest Mitchell Industry Trends Report Examines Effect of Lower Labor Rates - BodyShop Business

Latest Mitchell Industry Trends Report Examines Effect of Lower Labor Rates

Three main conclusions drawn from repairable first-party estimates on passenger cars from both DRP and non-DRP shops.

Mitchell International’s latest Industry Trends Report (ITR) for the first quarter of 2014 asks the question, "Do Lower Labor Rates Lead to More Repair?"

 

Greg Horn, vice president of industry relations, examined labor rates in
his feature article and came to three main conclusions from all
repairable first-party collision estimates on passenger cars in 2013 for
all 50 states: 

  • Lower labor rates do not mean additional operations written on the estimate
  • Lower labor rates do mean more panel repairing occurs
  • Lower labor rates does not translate into additional refinish hours

"The discussion of disparity in labor rates is always very lively, and the analysis of data and my fact-based conclusions draws many responses from collision repairers," said Horn. "The data we look at represents labor rates from shops that do and do not participate in direct repair programs, so it provides a thorough glance at rates in various states."

Labor rates are valuable for shop billing, and the statements are just one aspect of a shop’s interactions with its customers. The overall experience, which typically encompasses service delivery, shop quality, service and communications regarding a repair has an impact on a shop’s overall reputation. The bonus article, by Brian Doyle, customer experience product manager for Mitchell’s Auto Physical Damage Solutions, discusses the importance of a shop’s Net Promoter Score and how to effectively gauge customer loyalty.

Mitchell’s quarterly publication has served the auto physical damage and casualty industries for more than a decade and provides deep visibility into data-driven trends in the P&C market. It highlights Mitchell’s own proprietary data, along with
JD Power data, to give insights into market drivers that affect how
shops work and interact with customers, and outline how insurers can
reduce inefficiencies within various business processes.The complete report is available at www.mitchell.com/industry-trends-report


More information:

 

Mitchell 

You May Also Like

Crash Champions, NABC Donate Recycled Rides to California Mom

Crash Champions and the NABC recently donated a refurbished vehicle to a Palm Springs, Calif., mom as part of the NABC’s annual charity golf tournament.

Crash Champions announced that its collision repair team joined hands with the National Auto Body Council (NABC), the Loma Linda Children's Hospital and local non-profit organizations to pull off a celebratory vehicle giveaway on Jan. 17 to a Palm Springs, Calif., mom at the Tahquitz Creek Golf Resort as part of the NABC's annual charity golf tournament.

NABC Announces New Level One Partner

The NABC announced that the Collision Advice Legacy Group Spartan 300 has joined them as a level one partner.

SEMA Battle of the Builders TV Special Premieres Jan. 28

All-new, behind-the-scenes footage and exclusive interviews from the newest SEMA Battle of Builders competition will premiere on Jan. 28, 2023 at 9 a.m. EST on the History Channel’s Drive Block and A+E Network’s FYI.

HD Repair Forum Sets Content for 2023 Conference

The HD Repair Forum announced that it has set its educational sessions for its 2023 conference April 18-19 at the Hilton Fort Worth in Fort Worth, Texas.

Northwood Receives $100K in Scholarship Funds from CDK Global

Northwood University has received a $100,000 gift from CDK Global Inc. to fund scholarships for students enrolled in the university’s Automotive Marketing and Management Program.

Other Posts

NABC Announces Winners of Pars for Cars Golf Fundraiser

Each year, the NABC and its member partners raise funds to support hundreds of NABC Recycled Rides car presentations to those in need.

AASP-MN to Hold 21st Annual Race for Automotive Education

This event serves as the primary fundraiser for the AASP-MN Automotive Education Fund, which provides financial resources to automotive students.

Crash Champions Acquires Crocketts Premier Auto Body

Crash Champions announced it has finalized the acquisition of Crocketts Premier Auto Body in Pinole, Calif.

NABC Gifts Recycled Ride to Kansas City Mom

The NABC, along with GEICO, CARSTAR Metcalf, Meineke Car Care and Premiere Services, recently gifted a refurbished vehicle to a Kansas City mother and her special-needs child via the Recycled Rides program.